$1.25 MILLION PLEDGED TO BACK GLADES HOUSING PROJECT LOANS

The effort to assemble the loans needed to build two Glades housing projects has been given a shot in the arm with pledges to guarantee $1.25 million in loans, according to Carl House, president of NOAH Development Corp.

"I am confident this is what we need to complete the package," House said Thursday.

Developer Bob Satter and a New York foundation last week pledged a combined $1.25 million in loan guarantees, which lenders could fall back on should the project go into default.

"We're trying to reduce the risk factor to banks so banks will participate," said Marilyn Segal, chairman of the A.L. Mailman Family Foundation of White Plains, N.Y.

NOAH has been trying to finance a public-private housing project of 144 units in Belle Glade and 64 units in South Bay for low- to moderate-income tenants.

"They've had some trouble getting some of the banks in on it," said Satter, president of Associated Mortgage Investors, which recently acquired the Satter Cos. of West Palm Beach.

"We wanted to send a message to the banks that we as a professional developer recognize the value of the project. It's a very good project. It's a very safe project," said Satter, who belongs to the Palm Beach County Affordable Housing Task Force.

Satter is pledging a $750,000 guarantee. The Mailman Foundation will cover $500,000 if loans fail.

As far as the actual financing needed to build the apartments, area banks have pledged about 65 percent of the $3.9 million needed from private institutions, said County Commissioner Ken Adams.

The Palm Beach County Commission promised another $3.4 million.

Satter said he offered the loan guarantee on the condition that his accountants be able to review NOAH's books and that if the project falters, his company would take it over through foreclosure.

Segal said she had been looking for a self-help housing project in the Glades that could use help from her foundation, which was started in her father's memory.

She had been moved to action while teaching young children in Belle Glade as part of her work as director of Nova University's Family Center in Fort Lauderdale.